Hey everyone, first of all it’s of course completely up to Aave governance to decide to remove USDS and DAI as collateral given they had relatively low usage. Sky Ecosystem and the composition and risk of the collateral portfolio and allocation system currently requires a lot of specialized knowledge to properly understand, and we’re working very hard to make it more standardized and easy to access - in the short term through individual data rooms such as Spark Data Hub and https://data.grove.finance/ and updated risk frameworks, and long term through the sentinel network (warning: wall of text https://forum.sky.money/t/sky-agent-framework-sky-sentinel-network/27473) and other future proofed scalability solutions.
I am writing just to respond to one particular allegation which is confusing to me, the claim that Stars borrow from sky through “credit lines at low or zero cost”. Given that Stars pay the base rate to Sky, which is currently 4.55%, I am wondering what examples you are referring to of these zero or low cost credit lines. This may be a misunderstanding of how the fee payments are settled, which happens through monthly settlements, such as the one that was just completed this monday as a part of the 2nd November Executive Vote: https://vote.sky.money/executive/template-executive-vote-launch-starguards-october-monthly-settlement-cycle-and-treasury-management-function-october-ranked-delegate-compensation-atlas-core-development-compensation-payment-to-gnosis-add-allocator-obex-a-to-sp-beam-prime-agent-proxy-spells-november-27-2025
Overall I think it’s unfortunate that it won’t be as easy for Aave to tap into the returns that Sky generates through sUSDS, but regardless Sky will of course continue to underwrite and deploy into Aave instances, such as RLUSD in Aave Horizon, and also have upcoming Stars that will be aiming to work with Aave v4 instances which is a feature that synergizes very well with the modular Star model.
In the future, as Sky’s transparency and scalability initiatives pay off, I believe it will once again make sense to use it as collateral in v3, and also find opportunities for it in Aave v4